Zelenskyy signs laws to step up energy generation

Business

29 July 2024, 11:12 AM

Ukrainian President Volodymyr Zelenskyy signed new laws eliminating VAT and customs duties on importing energy equipment to boost promised energy generation capabilities, Holos party's MP Yaroslav Zheleznyak reported on Telegram on July 26.

Ukrainian parliament passed bills 11258 and 11259 fully on July 16, granting tax and VAT exemptions for the import of various energy-related equipment. This includes electric generators, wind and solar generation equipment, batteries (excluding low-capacity batteries), demining equipment, and tools for countering technical reconnaissance.

"The laws also cover tactical headsets for military use," Zheleznyak said.

Ukraine intends to construct up to 1 GW of gas-fired maneuverable generation with the help of international partners by 2024, and an additional 4 GW in the coming years, Zelenskyy announced at the opening ceremony of a Ukraine Recovery Conference in Berlin on June 11.

Russian missile and drone attacks have already destroyed 9 GW of Ukraine's energy capacity. Peak energy consumption in Ukraine reached 18 GW last winter, Zelenskyy also highlighted.

A former advisor to the Energy Minister and an ambassador extraordinary and plenipotentiary Lana Zerkal expressed skepticism, saying that achieving 1 GW of gas generation by the end of 2024 is unrealistic.

Co-founder of NOVA (Nova Poshta) Volodymyr Poperezhniuk believes it is entirely feasible to build GWs of energy generation within a year, though it would require an investment of $500 million per each GW.

The country's energy system needs 5-6 GW of various generation types. Ukraine's energy system loses 1-2 units of generation capacity after each Russian attack, Ukrenergo Chair Volodymyr Kudrytskyi said at the International Conference on Ukraine's Recovery in Berlin.

Ukrainian Energy Minister Herman Halushchenko highlighted the importance of new generation projects that can add gigawatts to the energy system as soon as possible at the same conference.

Naftogaz Ukraine Chair Oleksiy Chernyshov also spoke at the Berlin conference, advocating for the Ukraine's energy market liberalization to stimulate business and enhance production capabilities where feasible.

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